I recently visited a dealership and I talked to the general manager and asked how the store was doing. He mentioned that their sales weren’t where he wanted them to be. As I discussed with him more, he gave me his reasons that leads and traffic were down, and that they weren’t selling as much. As I listened to him, it didn’t sound like he had a defined solution yet. I felt more that he was just planning to wait until things changed. This got me thinking about what I would recommend and this is what I came up with.
Get Desirable Pre-Owned Inventory
If you don’t have the right inventory it will not bring people into the dealership and it will sit on your lot. Don’t wait for people to trade their vehicles in. Find which vehicles you have had success selling in the past (High Gross + Low Days to Sell), and acquire more of those. Look to people that you sold those vehicles to, and get those owners in to get their trade that you know you can sell. Those people will need vehicles too. This increases your serviceable customers as well. If someone comes in looking for a car you don’t have, don’t tell them you will call them if you get one and let them leave. Look through your sold database and try to find someone you sold that car to and get them to come in because you have a buyer.
Reach Out to Anyone in an Equity Position
Find people who own the previous body style, getting towards the end of their warranty and that you can get into a new car for $0 down while keeping their payment relatively the same. Look at your service drive. If anyone is bringing in a car that is out of warranty, they will most likely have a costly customer-pay RO. Let them keep that money and use their car as a trade to get into a new one. Call people who are in an equity position on their birthday and offer them a Birthday Special. This will also help you acquire more inventory.
Your Database is Gold
Quit focusing just on acquiring new customers. Your DMS and CRM are loaded with customers and prospects. Use your own data and proactively reach out to people before they start shopping. If they have submitted a lead, they have probably submitted leads to other dealers as well and the only way to win that deal is by lowering the price and your gross UNLESS you provided (and have continued to provide) a great customer experience and have created a loyal customer.
Reduce Your Response Time
Make sure that you are quick to respond. Customers are still experiencing 45 min to 2-hour+ response times at some dealerships because the lead goes to the wrong person. Make sure the leads are going to the right people who are working and available. Try and respond while they are still on your website. If a lead goes untouched for 15 minutes, every rep and manager should be notified and someone should jump on it.
Incorporate Text Messaging
Make sure your customers know they can communicate with you via text messaging. They might be in a meeting when you call them and more likely to respond. Make sure you are using a compliant opt-in and opt-out texting tool. Otherwise you are putting your dealership at risk of a costly lawsuit. Using the right texting solution allows you to track what is being communicated to the customer and will attach to the customer’s file in your CRM so that communication is preserved.
Keep Your Salespeople Accountable
Make sure people who are visiting the store get put into your CRM. Have the receptionist keep track of how many people they see pull up, walk the lot, walk through the showroom, and even visit for service. Often salespeople only put customers into the CRM when they think there is a chance to sell them. But the simple fact that they came in presents an opportunity right in front of you. Make sure you capture the customer’s data so that your reporting will be more accurate and accurately tell you what is bringing people in. If there is something that is working but the customer is not being put into the CRM, you may stop doing it. Also make sure that your salespeople ask, “What brought you in?” or “How did you hear about us?” You want to do more of what is working and you will only know if they are asking – and recording – those answers. Make sure they are making their calls. Listen to their calls. They should be asking for an appointment and not just to come by whenever. If they are not with a customer, they should be trying to get people to come in. Salespeople love the easy walk-in versus working to get someone in.
Get Managers Involved
Have managers confirm appointments. This makes sure that the salespeople are setting quality (and real) appointments and introduces customers to the manager earlier in the process rather than at the end when tensions are high and patience is low and the manager comes in to close the deal. Hold your managers accountable to manage their employees, talk to every customer and do their one-on-ones.
Speed up the Sales Process
The biggest frustration consumers have with the car buying process is that it takes too much time. Look for areas in which you can shorten the time that the customer is at the dealership. Keep the time away from the customer to a minimum. When the salesperson goes to the desk, this is when they either start talking amongst themselves and getting cold feet or shopping your competitors while sitting inside your dealership.
Create the Ideal Customer Experience
With so many dealers nearby that sell the same vehicle for the same price, why should someone buy from your dealership? It should be about the experience. What are you doing to make it the experience the customer wants? What do they want? Do you know? Something quick, easy, transparent, helpful, and without stress is a pretty good start. For most, buying a car is the 2nd most expensive thing that they will ever buy and comes with a lot of emotions. Understand their concerns and issues and proactively deal with them. Bad reviews and surveys are OK. They tell you what you need to fix. Often dealers are more concerned with the manufacturer’s CSI survey then they are of actual customer satisfaction. Reach out to customers who give positive feedback and surveys to go rate you on Google, Yelp and Facebook. But listen to the unhappy customers so that you can learn an outside perspective.
Reduce Employee Turnover
Our industry has always been plagued with turnover. Most people leave because they are not happy and/or successful. Often, we hire anyone, even someone with no experience and have them watch some training (maybe) and then throw them on the floor to sink or swim. Have your managers take time to train them on how to succeed. Give these new salespeople the tools that will help them to do their job. Managers need to make sure that they are setting goals with the salespeople, going over their metrics, coaching them, and helping them realize the tools management has in place is not to be “Big Brother,” but to help them be successful.
Automate as Much as you Can
Let your software do as much work for you as possible. Most processes get set up and forgotten. Let your software keep you organized, in contact with everyone and ensure that nothing falls through the cracks. Run lots of campaigns that are very targeted and specific with both the audience and the message.
Reward Loyal Customers
Do you know who your most loyal and long-standing customers are? Use your CRM to identify and segment these customers to receive notifications when they call or visit your business. Create a customer appreciation campaign to thank your loyal customers and reward them for their repeat business. Send them birthday, anniversary and special occasion cards in the mail. Offer discounts to entice them to continue to do business with you. Offer incentives for their referrals. Invite them to special VIP events, such as new product introductions or a customer appreciation party.